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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. Again, prices are expressed as pre-money valuations.

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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. 50x more Internet users (2.4 Where are we today? Online connections that are 180x faster (10.5

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The Power of Quora & Why Benchmark was Right to Pay Up

Both Sides of the Table

Pre Quora – AVC & Answers OnStartups. For me this dates back to pre-Internet days of bulletin boards, CompuServe , Prodigy and the like. What I notice is that people further the conversation, talk with each other, network, try to get noticed (linking to their websites, etc.). It’s true. No, really.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

is the leading consumer internet company with Terry Semel as CEO. Not long after the product launch we began the initial conversations with VCs for a Series A round. One partnership was clearly very divided and a vocal minority of GPs thought consumer internet companies were a massive waste of time and money.

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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

This conversation seems to come up very frequently these days both with portfolio companies and with entrepreneurs just looking for mentorship. Every conversation about fund raising should start with what your current operational needs are and the stage of your business. 5 million raised at a $9 million pre-money valuation or 35.7%

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. was spun out, and the valuation was set by that financing round. Intermix and its advisors weren’t fools. by February 2006).

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Is the Unicorn Endangered or Extinct?

Professor VC

In the episode, Kristy Kruger talks about picturing unicorns roaming the planes in Africa as a kid and being at a party many years later when the topic of conversation turned to endangered species: It was about a group of five to seven people, kind of standing around the keg, just talking. or a market cap of $800M. igthwghjg2q2g8hu4).